The S&P 500 and Nasdaq indexes fell at the start of Wednesday’s trading session as Wall Street pondered the long-term implications of a federal government shutdown and its impact on the US economy.
The S&P shed 0.2% while the Nasdaq Composite lost 0.3%, falling more than 70 points just after the opening bell on Wednesday.
The Dow Jones Industrial Average hovered near flat after an early 52-point decline.
The pullback came just one day after the market closed out a strong September, with the S&P 500 up more than 3.5% for the month.
Processing firm ADP reported that private-sector employers cut 32,000 jobs in September, missing economists’ forecast for a 45,000 gain.
The decline was the steepest since March 2023.
Adding to the blow, ADP revised its August reading to a 3,000 job loss from an originally reported 54,000 increase.
With the Labor Department shuttered during the shutdown, the September nonfarm payrolls report will not be released, leaving traders reliant on private surveys.
“The market seemed to be looking for a reason to sell off after bucking the seasonal weakness we tend to experience in September,” Jay Woods, chief market strategist at Freedom Capital Markets, told CNBC.
“While the shutdown was expected, the lack of progress and urgency to a resolution has investors concerned.”
Meanwhile, gold prices hit fresh all-time highs above $3,900 an ounce Wednesday as investors fled risk assets, while the dollar slid 0.2% to 97.61, putting it on pace for its worst annual drop since 2003.
The surge marked gold’s 39th record this year, fueled by safe-haven demand and a weakening greenback that has already lost 10% in 2025.
The S&P 500 has generally weathered past government shutdowns with limited damage.
During the five-day shutdown in November 1995, the index rose 1.36%, an average daily gain of 0.27%.
Weeks later, another government shutdown ensued — this one lasting 14 days from December 1995 into January 1996. During that funding gap, the S&P saw a smaller 0.16% total increase, translating to a nearly flat daily return of 0.01%.
During the October 2013 government shutdown, which stretched for 14 trading days, the S&P 500 advanced 3.17% overall, or 0.23% per day on average.
In January 2018, a two-day shutdown led to a 0.81% gain for the index, with daily returns averaging 0.4%.
The longest shutdown in modern history, which ran for 22 trading days from December 2018 through January 2019, coincided with a sharp rebound in equities.
The S&P 500 surged 10.43% over the period, averaging daily returns of 0.47%.
